Cengage emerges from Chapter 11

Cengage emerges from Chapter 11

Cengage Learning has emerged from Chapter 11 after completing its financial restructuring.

Michael Hansen, c.e.o of Cengage Learning, said the company had used the restructuring process to significantly reduce debt and associated costs while substantially improving its capital structure.

“Cengage Learning has emerged from this process with a strong financial foundation providing flexibility and resources to accelerate growth and support our efforts to transform learning with a profound impact on the learning experience," Hansen said.  "In parallel with our restructuring efforts, we have built a strong, collaborative leadership team who has taken decisive action to put us on a path of growth and success. Together with our engaged, dedicated employees, we will continue to build on this foundation for the benefit of all of our stakeholders.”

During the Chapter 11 process, the company managed to eliminate approximately $4bn in funded debt and has “excellent” liquidity to support its strategic plans after securing $1.75bn in exit financing, it said.  “In addition, the company has forged new technology partnerships, revamped its product development and delivery model, and realigned its sales and marketing approach to get even closer to end-users in order to anticipate their evolving needs,” Cengage said.

Hansen added that the academic publisher was now putting faculty and students as end-users of its products and services "first" in the development of educational materials, which he said was a big shift in emphasis.

Cengage Learning filed for Chapter 11 bankruptcy protection last July as part of a pre-arranged agreement which would help it wipe out more than $4 billion of debt.